by Zach | Nov 23, 2021 | Press Release
Nov 23, 2021 • 9:00 am EST
LOS ANGELES–(BUSINESS WIRE)–
SKECHERS USA, Inc. (NYSE:SKX), The Comfort Technology Company™, and a global footwear leader, today announced that John Vandemore, Chief Financial Officer, will participate in a virtual fireside chat at the Morgan Stanley Global Consumer and Retail Conference on Wednesday, December 1, 2021 at 5:45 a.m. PT / 8:45 a.m. ET.
The audio portion of the virtual fireside chat will be available live and on replay for 90 days at investors.skechers.com.
About SKECHERS USA, Inc.
Skechers, The Comfort Technology Company based in Southern California, designs, develops and markets a diverse range of lifestyle and performance footwear, apparel and accessories for men, women and children. The Company’s collections are available in the United States and over 170 countries and territories via department and specialty stores, and direct to consumers through 4,170 Company and third-party-owned retail stores and e-commerce websites. The Company manages its international business through a network of global distributors, joint venture partners in Asia, Israel and Mexico, and wholly-owned subsidiaries in Canada, Japan, India, Europe and Latin America. For more information, please visit about.skechers.com and follow us on Facebook, Instagram, Twitter, and TikTok.
Investor Relations: Andrew Greenebaum
Addo Investor Relations
[email protected]
Press: Jennifer Clay
Skechers
Vice President, Corporate Communications
(310) 937-1326
Source: SKECHERS USA, Inc.
by Zach | Nov 11, 2021 | Press Release
Nov 11, 2021 • 9:00 am EST
Legendary Wide Receiver to Star in Campaigns for Skechers Footwear and Apparel Collections
LOS ANGELES–(BUSINESS WIRE)–
Skechers, The Comfort Technology Company™, signs one of the top pass receivers of all time as retired Minnesota Vikings star Cris Carter joins the brand’s legendary athlete roster. Carter, a member of the Pro Football Hall of Fame and a sports analyst off the field, will star in a national multi-platform Skechers Max Cushioning® footwear and Skechers apparel marketing campaign for the global lifestyle and performance company launching later this year.
Hall of Fame wide receiver Cris Carter to appear in Skechers Max Cushioning footwear and Skechers apparel campaigns for The Comfort Technology Company. (Photo: Business Wire)
Hall of Fame wide receiver Cris Carter to appear in Skechers Max Cushioning footwear and Skechers apparel campaigns for The Comfort Technology Company. (Photo: Business Wire)
“I was on some amazing teams throughout my career, and it feels like Skechers is building their own All-Century Team with their star roster,” said Cris Carter. “It was immediately clear that I had to sign on. Plus, I’m almost twenty years out of the game, so I can use that Skechers signature comfort now more than ever!”
“Cris Carter defined his career in the game with exciting plays that had fans cheering, and we look forward to Cris bringing that energy to Skechers,” added Michael Greenberg, president of Skechers. “Our brand has had a reputation for comfortable footwear going back decades, but just as we’ve been building our roster of legendary athletic talent, we continue to enhance our comfort game as well. We’re truly The Comfort Technology Company and Cris will be a perfect addition to help share this message about the innovation in our men’s collections to football fans everywhere.”
Skechers has been leading the industry on comfort through the development of innovative technologies and materials for many years. Consumers can only find these signature features in Skechers products. This includes patented Skechers Arch Fit Technology™ along with Skechers Max Cushioning Technology™, Skechers Hyper Burst Technology™, Skechers Air-Cooled Memory Foam®, Skechers Relaxed Fit Technology™ and Skechers Stretch Fit Technology™, among many others.
Cris Carter, one of the most successful pass catchers in football, started at Ohio State and set school records for receptions (168), yards (2,725) and touchdowns (27). He was later selected for the Ohio State Football All-Century Team and named to the Varsity O Hall of Fame. He was drafted to the NFL in 1987, starting a career that spanned 15 seasons including 12 with the Minnesota Vikings where he settled in as the team’s top receiver. Carter appeared in eight Pro Bowls and was the second player in NFL history to catch 1,000 passes. He retired in 2002 with 1,101 receptions, 13,899 receiving yards, 12.6 yards per reception and 130 touchdowns. He was named Walter Payton NFL Man of the Year in 1999 in recognition of his volunteer and charity work as well as excellence on the field, and was inducted into the Pro Football Hall of Fame in 2013. Post-retirement, Carter shifted to radio and broadcasting as an NFL analyst working with HBO’s Inside The NFL, ESPN, FOX Sports, Sirius Satellite Radio and Yahoo Sports.
Carter is now part of a team of Skechers athletes and sports icons, which currently includes ace Dodgers pitcher Clayton Kershaw, former quarterback and broadcaster Tony Romo, former defensive end and broadcaster Howie Long, as well as boxer Sugar Ray Leonard. Through the years, Skechers has utilized sports icons when advertising its men’s collection with an alumni list featuring names like Joe Montana, Pete Rose, Mariano Rivera, David Ortiz, Ozzie Smith, Joe Namath, Ronnie Lott, Karl Malone, Kareem Abdul-Jabbar, Rick Fox, Wayne Gretzky, and the late Tommy Lasorda.
The range of Skechers men’s footwear and apparel collections is available in Skechers retail stores as well as skechers.com, plus department stores and footwear retailers around the globe.
About SKECHERS USA, Inc.
Skechers (NYSE:SKX), The Comfort Technology Company based in Southern California, designs, develops and markets a diverse range of lifestyle and performance footwear, apparel and accessories for men, women and children. The Company’s collections are available in the United States and over 170 countries and territories via department and specialty stores, and direct to consumers through 4,170 Company- and third-party-owned retail stores and e-commerce websites. The Company manages its international business through a network of global distributors, joint venture partners in Asia, Israel and Mexico, and wholly-owned subsidiaries in Canada, Japan, India, Europe and Latin America. For more information, please visit about.skechers.com and follow us on Facebook, Instagram, Twitter, and TikTok.
This announcement contains forward-looking statements that are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include, without limitation, Skechers’ future domestic and international growth, financial results and operations including expected net sales and earnings, its development of new products, future demand for its products, its planned domestic and international expansion, opening of new stores and additional expenditures, and advertising and marketing initiatives. Forward-looking statements can be identified by the use of forward-looking language such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” “project,” “will be,” “will continue,” “will result,” “could,” “may,” “might,” or any variations of such words with similar meanings. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements. Factors that might cause or contribute to such differences include the disruption of business and operations due to the COVID-19 pandemic; delays or disruptions in our supply chain; international economic, political and market conditions including the challenging consumer retail markets in the United States; sustaining, managing and forecasting costs and proper inventory levels; losing any significant customers; decreased demand by industry retailers and cancellation of order commitments due to the lack of popularity of particular designs and/or categories of products; maintaining brand image and intense competition among sellers of footwear for consumers, especially in the highly competitive performance footwear market; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in Skechers’ annual report on Form 10-K for the year ended December 31, 2020 and its quarterly report on Form 10-Q for the three months ended September 30, 2021. More specifically, the COVID-19 pandemic has had and is currently having a significant impact on Skechers’ business, financial conditions, cash flow and results of operations. Forward-looking statements with respect to the COVID-19 pandemic include, without limitation, Skechers’ plans in response to this pandemic. At this time, there is significant uncertainty about the COVID-19 pandemic, including without limitation, (i) the duration and extent of the impact of the pandemic, (ii) governmental responses to the pandemic, including how such responses could impact Skechers’ business and operations, as well as the operations of its factories and other business partners, (iii) the effectiveness of Skechers’ actions taken in response to these risks, and (iv) Skechers’ ability to effectively and timely adjust its plans in response to the rapidly changing retail and economic environment. Taking these and other risk factors associated with the COVID-19 pandemic into consideration, the dynamic nature of these circumstances means that what is stated in this press release could change at any time, and as a result, actual results could differ materially from those contemplated by such forward-looking statements. The risks included here are not exhaustive. Skechers operates in a very competitive and rapidly changing environment. New risks emerge from time to time and we cannot predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results. Moreover, reported results should not be considered an indication of future performance.
Jennifer Clay
Skechers
[email protected]
Source: SKECHERS USA, Inc.
by Zach | Nov 9, 2021 | Press Release
Nov 9, 2021 • 9:00 am EST
LOS ANGELES–(BUSINESS WIRE)–
SKECHERS USA, Inc. (NYSE:SKX), The Comfort Technology Company™, and a global footwear leader, today announced that John Vandemore, Chief Financial Officer, will participate in a virtual fireside chat at the Berenberg US CEO Conference on Wednesday, November 10, 2021 at 8:00 a.m. PT / 11:00 a.m. ET.
The audio portion of the virtual fireside chat will be available live and on replay for 90 days at investors.skechers.com.
About SKECHERS USA, Inc.
Skechers, The Comfort Technology Company based in Southern California, designs, develops and markets a diverse range of lifestyle and performance footwear, apparel and accessories for men, women and children. The Company’s collections are available in the United States and over 170 countries and territories via department and specialty stores, and direct to consumers through 4,170 Company and third-party-owned retail stores and e-commerce websites. The Company manages its international business through a network of global distributors, joint venture partners in Asia, Israel and Mexico, and wholly-owned subsidiaries in Canada, Japan, India, Europe and Latin America. For more information, please visit about.skechers.com and follow us on Facebook, Instagram, Twitter, and TikTok.
Investor Relations: Andrew Greenebaum
Addo Investor Relations
[email protected]
Press: Jennifer Clay
Skechers
Vice President, Corporate Communications
(310) 937-1326
Source: SKECHERS USA, Inc.
by Zach | Oct 28, 2021 | Press Release
Oct 28, 2021 • 4:05 pm EDT
LOS ANGELES–(BUSINESS WIRE)–
SKECHERS U.S.A., Inc. (“Skechers” or the “Company”) (NYSE:SKX), The Comfort Technology CompanyTM and a global footwear leader, today announced financial results for the third quarter ended September 30, 2021.
Third Quarter Highlights
“Skechers achieved a new third quarter sales record surpassing $1.5 billion for the period, a remarkable achievement given the on-going supply chain disruptions,” began David Weinberg, Chief Operating Officer of Skechers. “The record quarter was the result of double-digit improvements in both our domestic and international businesses compared to the third quarter 2020, reflecting the relevancy of our product globally and a normalizing retail environment. Traffic increased in our Skechers stores, and we achieved growth of 44.1% and significantly higher gross margins in our Direct-to-Consumer business. Our Domestic and International Wholesale businesses both grew over 10%, an achievement given the global logistical challenges. The increases in International Wholesale came largely from double-digit increases in our Distributor sales, and strong performance in markets like China and India. As we look to the fourth quarter and into the first half of 2022, we believe supply chain constraints will remain a challenge, although we are beginning to see progress in key global ports, especially in Europe and other international markets. Nonetheless, we are proud of the execution of our global team to deliver our comfort technology footwear to retail stores and our partners around the world to meet the strong demand for Skechers products.”
“Comfort and technology remain at the core of who we are and why Skechers continues to be a leading global footwear brand. We offer signature comfort across the entire Skechers catalog, incorporating innovation, style and quality at a reasonable price. Supply chain constraints challenged our normal delivery speeds, but our teams worked tirelessly to move inventory as quickly as possible, delivering to our stores and partners in an effort to keep up with the demand,” stated Robert Greenberg, Chief Executive Officer of Skechers. “While we supported our business with pervasive advertising campaigns globally, we also focused on developing new product, creating what we believe is our strongest offering yet. This includes a growing seasonal collection, with styles comprised of recycled materials and building on our Fit offerings with consumers’ comfort in mind. Our accomplishments were many during the quarter—including remaining the third largest athletic footwear company in the world and achieving a new quarterly sales record for the period. That said, we believe the best is yet to come for Skechers.”
Third Quarter 2021 Financial Results
Three Months Ended
September 30,
Change
(in millions, except per share data)
2021
2020
$
%
Sales
$
1,551.0
$
1,300.9
$
250.1
19.2
Gross profit
769.4
625.1
144.3
23.1
Gross margin
49.6
%
48.1
%
150
bps
Operating expenses
630.7
536.2
94.5
17.6
As a % of sales
40.7
%
41.2
%
(50
)bps
Earnings from operations
146.2
92.1
54.1
58.7
Operating margin
9.4
%
7.1
%
230
bps
Net earnings
103.1
64.3
38.8
60.3
Diluted earnings per share
$
0.66
$
0.41
$
0.25
61.0
Third quarter sales increased 19.2% as a result of a 20.1% increase in domestic sales and an 18.6% increase in international sales. Domestic and international growth was driven by increases in both direct-to-consumer and wholesale, as COVID-19 impacts continued to ease. On a constant currency basis, the Company’s total sales increased 17.1%.
Sales grew across all segments with increases to Domestic Wholesale of 10.1%, International Wholesale of 10.6%, and Direct-to-Consumer of 44.1%. Improvements in Domestic Wholesale were the result of higher unit sales volume. International Wholesale increases were driven by growth of 61.9% in Distributor sales, 10.0% in China, and 67.5% in India, partially offset by an 11.0% decline in our European subsidiaries. Direct-to-Consumer sales grew across all channels, led by domestic and international retail stores, and achieved a double-digit increase in average selling price from higher prices and lower promotions. Direct-to-Consumer comparable same store sales increased 31.0%, driven by an increase of 33.7% domestically and 25.1% internationally.
Gross margin increased 150 basis points to 49.6% driven by Direct-to-Consumer gross margin growth, resulting from higher average selling prices, partially offset by declines in International Wholesale and Domestic Wholesale, due to higher average costs per unit.
Operating expenses increased $94.5 million, or 17.6%. Selling expenses increased by $33.8 million, or 39.4%, due to higher global advertising costs. General and administrative expenses increased by $60.7 million, or 13.5%, primarily as a result of higher labor costs as well as increased rent and warehouse and distribution expenses.
Earnings from operations increased $54.1 million to $146.2 million, an increase of 58.7%.
Net earnings were $103.1 million and diluted earnings per share were $0.66.
In the third quarter, the Company’s effective income tax rate was 15.6%.
“Skechers’ double-digit growth across all segments reflects continuing strong demand for our comfort technology products,” stated John Vandemore, Chief Financial Officer of Skechers. “Despite severe global supply chain challenges, we delivered record third quarter sales along with robust gross margins and fantastic earnings growth. Further, our global infrastructure investments continued, with our China distribution center becoming fully operational and excellent progress made on many other infrastructure and technology projects. We remain confident that as supply chain constraints ease, Skechers’ will be well positioned to meet the tremendous consumer demand for our products.”
Nine Months 2021 Financial Results
Nine Months Ended
September 30,
Change
(in millions, except per share data)
2021
2020
$
%
Sales
$
4,637.1
$
3,272.7
$
1,364.4
41.7
Gross profit
2,298.6
1,541.4
757.2
49.1
Gross margin
49.6
%
47.1
%
250
bps
Operating expenses
1,811.1
1,476.5
334.6
22.7
As a % of sales
39.1
%
45.1
%
(600
) bps
Earnings from operations
505.1
76.0
429.1
564.6
Operating margin
10.9
%
2.3
%
860
bps
Net earnings
339.1
45.3
293.8
648.6
Diluted earnings per share
$
2.17
$
0.29
$
1.88
648.3
Year-to-date sales increased 41.7% reflecting a 42.4% increase in domestic sales and a 41.2% increase in international sales with the largest contribution derived from International Wholesale growth. On a constant currency basis, the Company’s total sales increased 37.4%.
Sales grew across all segments with increases to Domestic Wholesale of 36.0%, International Wholesale of 35.6%, and Direct-to-Consumer of 58.9%. Improvements in Domestic Wholesale were the result of higher unit sales volume. International Wholesale had growth in China of 52.6% and Europe of 16.1%. Direct-to-Consumer had higher units sold and higher average selling prices. Direct-to-Consumer comparable same store sales increased 45.0%, driven by an increase of 49.4% domestically and 33.4% internationally.
Gross margin increased 250 basis points to 49.6% primarily driven by increased gross margins in the Direct-to-Consumer segment, which was the result of increased average selling prices and reduced promotional activity.
Operating expenses increased by $334.6 million or 22.7%. Selling expenses increased by $117.3 million or 53.3%, primarily due to higher global advertising costs. General and administrative expenses increased by $217.3 million or 17.3%, primarily due to higher labor and incentive compensation costs, global warehouse and distribution expenses, and rent.
Earnings from operations increased $429.1 million to $505.1 million.
Net earnings were $339.1 million and diluted earnings per share were $2.17.
The Company’s effective income tax rate was 19.0%.
Balance Sheet
Cash, cash equivalents and investments totaled $1.18 billion, a decrease of $398.3 million, or 25.2% from December 31, 2020 primarily as a result of repaying $452.5 million on our revolving credit facility in the second quarter of 2021.
Total inventory was $1.23 billion, an increase of $213.6 million or 21.0% from December 31, 2020. Increased inventory levels primarily reflect growth in the International Wholesale segment and higher merchandise in transit due to supply chain challenges with shipping and port delays.
Outlook
For the fiscal year 2021, the Company believes it will achieve sales between $6.15 billion and $6.20 billion and diluted earnings per share of between $2.45 and $2.50. Further, the Company believes that for the fourth quarter of 2021, it will achieve sales between $1.51 billion and $1.56 billion and diluted earnings per share of between $0.28 and $0.33.
Store Count
Number of Store Locations as of
Number of Store Locations as of
December 31, 2020
Opened
Closed(1)
September 30, 2021
Domestic stores
523
16
(23
)
516
International stores
331
19
(6
)
344
Joint venture stores
467
102
(77
)
492
Distributor, licensee and franchise stores
2,570
422
(174
)
2,818
Total Skechers stores
3,891
559
(280
4,170
Does not reflect temporary closures due to the COVID-19 pandemic.
Third Quarter 2021 Conference Call
The Company will host a conference call today at 4:30 p.m. ET / 1:30 p.m. PT to discuss its third quarter 2021 financial results. The call can be accessed on the Investor Relations section of the Company’s website at investors.skechers.com. For those unable to participate during the live broadcast, a replay will be available beginning October 28, 2021 at 7:30 p.m. ET, through November 11, 2021, at 11:59 p.m. ET. To access the replay, dial 844-512-2921 (U.S.) or 412-317-6671 (International) and use passcode: 13723310.
About SKECHERS U.S.A., Inc.
Skechers, The Comfort Technology Company based in Southern California, designs, develops and markets a diverse range of lifestyle and performance footwear, apparel and accessories for men, women and children. The Company’s collections are available in the United States and over 170 countries and territories via department and specialty stores, and direct to consumers through 4,170 Company and third-party-owned retail stores and e-commerce websites. The Company manages its international business through a network of global distributors, joint venture partners in Asia, Israel and Mexico, and wholly-owned subsidiaries in Canada, Japan, India, Europe and Latin America. For more information, please visit about.skechers.com and follow us on Facebook, Instagram, Twitter, and TikTok.
Reference in this press release to “Sales” refers to Skechers’ net sales reported under GAAP. This announcement contains forward-looking statements that are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include, without limitation, Skechers’ future domestic and international growth, financial results and operations including expected net sales and earnings, its development of new products, future demand for its products, its planned domestic and international expansion, opening of new stores and additional expenditures, and advertising and marketing initiatives. Forward-looking statements can be identified by the use of forward-looking language such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” “project,” “will be,” “will continue,” “will result,” “could,” “may,” “might,” or any variations of such words with similar meanings. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements. Factors that might cause or contribute to such differences include the disruption of business and operations due to the COVID-19 pandemic; delays or disruptions in our supply chain; international economic, political and market conditions including the challenging consumer retail markets in the United States; sustaining, managing and forecasting costs and proper inventory levels; losing any significant customers; decreased demand by industry retailers and cancellation of order commitments due to the lack of popularity of particular designs and/or categories of products; maintaining brand image and intense competition among sellers of footwear for consumers, especially in the highly competitive performance footwear market; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in Skechers’ annual report on Form 10-K for the year ended December 31, 2020 and its quarterly report on Form 10-Q for the six months ended June 30, 2021. More specifically, the COVID-19 pandemic has had and may continue to have a significant impact on Skechers’ business, financial conditions, cash flow and results of operations. Forward-looking statements with respect to the COVID-19 pandemic include, without limitation, Skechers’ plans in response to this pandemic. At this time, there is significant uncertainty about the COVID-19 pandemic, including without limitation, (i) the duration and extent of the impact of the pandemic, (ii) governmental responses to the pandemic, including how such responses could impact Skechers’ business and operations, as well as the operations of its factories and other business partners, (iii) the effectiveness of Skechers’ actions taken in response to these risks, and (iv) Skechers’ ability to effectively and timely adjust its plans in response to the rapidly changing retail and economic environment. Taking these and other risk factors associated with the COVID-19 pandemic into consideration, the dynamic nature of these circumstances means that what is stated in this press release could change at any time, and as a result, actual results could differ materially from those contemplated by such forward-looking statements. The risks included here are not exhaustive. Skechers operates in a very competitive and rapidly changing environment. New risks emerge from time to time and we cannot predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results. Moreover, reported results should not be considered an indication of future performance.
SKECHERS U.S.A., INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
As of September 30,
As of December 31,
(in thousands)
2021
2020
ASSETS
Current assets
Cash and cash equivalents
$
952,076
$
1,370,826
Short-term investments
90,577
100,767
Trade accounts receivable, net
758,713
619,800
Other receivables
81,362
69,222
Total receivables
840,075
689,022
Inventory
1,230,349
1,016,774
Prepaid expenses and other current assets
189,598
166,962
Total current assets
3,302,675
3,344,351
Property, plant and equipment, net
1,087,183
935,441
Operating lease right-of-use assets
1,130,279
1,171,521
Deferred tax assets
70,353
63,884
Long-term investments
139,052
108,412
Goodwill
93,497
93,497
Other assets, net
78,536
95,263
Total non-current assets
2,598,900
2,468,018
TOTAL ASSETS
$
5,901,575
$
5,812,369
LIABILITIES AND EQUITY
Current liabilities
Accounts payable
$
846,101
$
744,077
Operating lease liabilities
214,192
204,370
Accrued expenses
232,599
208,712
Current installments of long-term borrowings
43,742
52,250
Short-term borrowings
320
3,297
Total current liabilities
1,336,954
1,212,706
Long-term borrowings, excluding current installments
282,760
679,415
Long-term operating lease liabilities
1,010,499
1,065,069
Deferred tax liabilities
9,850
11,439
Other long-term liabilities
129,518
118,077
Total non-current liabilities
1,432,627
1,874,000
Total liabilities
2,769,581
3,086,706
Stockholders’ equity
Preferred Stock
—
—
Class A Common Stock
135
134
Class B Common Stock
21
21
Additional paid-in capital
410,376
372,165
Accumulated other comprehensive loss
(44,510
)
(27,285
)
Retained earnings
2,475,481
2,136,400
Skechers U.S.A., Inc. equity
2,841,503
2,481,435
Noncontrolling interests
290,491
244,228
Total stockholders’ equity
3,131,994
2,725,663
TOTAL LIABILITIES AND EQUITY
$
5,901,575
$
5,812,369
SKECHERS U.S.A., INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in thousands, except per share data)
2021
2020
2021
2020
Sales
$
1,550,957
$
1,300,886
$
4,637,147
$
3,272,703
Cost of sales
781,513
675,765
2,338,587
1,731,349
Gross profit
769,444
625,121
2,298,560
1,541,354
Royalty income
7,519
3,216
17,654
11,061
776,963
628,337
2,316,214
1,552,415
Operating expenses
Selling
119,775
85,926
337,519
220,222
General and administrative
510,941
450,285
1,473,570
1,256,228
Total operating expenses
630,716
536,211
1,811,089
1,476,450
Earnings from operations
146,247
92,126
505,125
75,965
Other income (expense)
Interest income
813
1,884
2,518
5,739
Interest expense
(3,348
)
(4,643
)
(10,878
)
(11,428
)
Other, net
(5,514
)
7,726
(11,705
)
15,882
Total other income (expense)
(8,049
)
4,967
(20,065
)
10,193
Earnings before income taxes
138,198
97,093
485,060
86,158
Income tax expense
21,497
14,983
92,027
18,104
Net earnings
116,701
82,110
393,033
68,054
Less: Net earnings attributable to noncontrolling interest
13,562
17,832
53,952
22,771
Net earnings attributable to Skechers U.S.A. Inc.
$
103,139
$
64,278
$
339,081
$
45,283
Net earnings per share attributable to Skechers U.S.A. Inc.
Basic
$
0.66
$
0.42
$
2.18
$
0.29
Diluted
$
0.66
$
0.41
$
2.17
$
0.29
Weighted-average shares used in calculating net earnings per share attributable to Skechers U.S.A. Inc.
Basic
155,835
154,462
155,413
154,061
Diluted
157,123
154,980
156,590
154,707
SKECHERS U.S.A., INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
Three Months Ended September 30,
Change
(in millions)
2021
2020
$
%
Domestic Wholesale
Sales
$
350.7
$
318.4
32.3
10.1
Gross margin
36.0
%
38.7
%
(270
) bps
International Wholesale
Sales
$
711.9
$
643.4
68.5
10.6
Gross margin
44.9
%
45.9
%
(100
) bps
Direct-to-Consumer
Sales
$
488.4
$
339.1
149.3
44.1
Gross margin
66.3
%
60.9
%
540
bps
Total
Sales
$
1,551.0
$
1,300.9
250.1
19.2
Gross margin
49.6
%
48.1
%
150
bps
Nine Months Ended September 30,
Change
(in millions)
2021
2020
$
%
Domestic Wholesale
Sales
$
1,125.0
$
827.1
297.9
36.0
Gross margin
37.5
%
38.5
%
(100)
bps
International Wholesale
Sales
$
2,174.2
$
1,603.8
570.4
35.6
Gross margin
45.5
%
44.7
%
80
bps
Direct-to-Consumer
Sales
$
1,337.9
$
841.8
496.1
58.9
Gross margin
66.4
%
60.1
%
630
bps
Total
Sales
$
4,637.1
$
3,272.7
1,364.4
41.7
Gross margin
49.6
%
47.1
%
250
bps
SKECHERS U.S.A., INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES (Unaudited)
Constant Currency Adjustment
We evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of period-over-period fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our results of operations, thereby facilitating period-to-period comparisons of our business performance and is consistent with how management evaluates the Company’s performance. We calculate constant currency percentages by converting our current period local currency financial results using the prior-period exchange rates and comparing these adjusted amounts to our prior period reported results.
Three Months Ended September 30,
2021
2020
Change
(in millions,
except per share data)
Reported GAAP Measure
Constant Currency
Adjustment
Adjusted for Non-GAAP Measures
Reported GAAP Measure
$
%
Sales
$
1,551.0
$
(28.1
)
$
1,522.9
$
1,300.9
222.0
17.1
Cost of sales
781.6
(15.4
)
766.2
675.8
90.4
13.4
Gross profit
$
769.4
$
(12.7
)
$
756.7
$
625.1
131.6
21.1
Royalty income
7.5
(0.3
)
7.2
3.2
4.0
125.0
Operating expenses
630.7
(9.4
)
621.3
536.2
85.1
15.9
Earnings from operations
$
146.2
$
(3.6
)
$
142.6
$
92.1
50.5
54.8
Other income (expense)
(8.0
)
6.0
(2.0
)
5.0
(7.0
)
(140.0
)
Income tax expense
21.5
(0.7
)
20.8
15.0
5.8
38.7
Less: Noncontrolling interests
13.6
(1.0
)
12.6
17.8
(5.2
)
(29.2
)
Net earnings
$
103.1
$
4.1
$
107.2
$
64.3
42.9
66.7
Diluted earnings per share
$
0.66
$
0.02
$
0.68
$
0.41
0.27
65.9
Nine Months Ended September 30,
2021
2020
Change
(in millions,
except per share data)
Reported GAAP Measure
Constant Currency
Adjustment
Adjusted for Non-GAAP Measures
Reported GAAP Measure
$
%
Sales
$
4,637.1
$
(139.6
)
$
4,497.5
$
3,272.7
1,224.8
37.4
Cost of sales
2,338.5
(77.1
)
2,261.4
1,731.3
530.1
30.6
Gross profit
$
2,298.6
$
(62.5
)
$
2,236.1
$
1,541.4
694.7
45.1
Royalty income
17.6
(1.1
)
16.5
11.1
5.4
48.6
Operating expenses
1,811.1
(43.0
)
1,768.1
1,476.5
291.6
19.7
Earnings from operations
$
505.1
$
(20.6
)
$
484.5
$
76.0
408.5
537.5
Other income (expense)
(20.0
)
11.7
(8.3
)
10.2
(18.5
)
(181.4
)
Income tax expense
92.0
(3.1
)
88.9
18.1
70.8
391.2
Less: Noncontrolling interests
54.0
(4.5
)
49.5
22.8
26.7
117.1
Net earnings
$
339.1
$
(1.3
)
$
337.8
$
45.3
292.5
645.7
Diluted earnings per share
$
2.17
$
(0.01
)
$
2.16
$
0.29
1.87
644.8
Investor Relations:
Andrew Greenebaum
Addo Investor Relations
[email protected]
Press:
Jennifer Clay
Vice President, Corporate Communications
Skechers U.S.A., Inc.
(310) 318-3100
Source: SKECHERS U.S.A., Inc.
by Zach | Oct 26, 2021 | Press Release
Skechers President Michael Greenberg and Friendship Foundation member Jacob address participants at the 2021 Skechers Pier to Pier Friendship Walk in Manhattan Beach, CA. (Photo: Business Wire)
From left: Presenting sponsor Kinecta Federal Union CEO Keith Sultemeier, Skechers Foundation Executive Director Robin Curren, Brooke Burke, Sugar Ray Leonard, Meb Keflezighi and Skechers President Michael Greenberg kick off the 2021 Skechers Pier to Pier Friendship Walk in Manhattan Beach, CA. (Photo: Business Wire)
Oct 26, 2021 • 10:30 am EDT
Presented by Kinecta Federal Credit Union, the Annual Star-Studded Event Has Raised More Than $17 Million in 13 Years for Children with Special Needs and Education
LOS ANGELES–(BUSINESS WIRE)– The Skechers Pier to Pier Friendship Walk returned to the beach and broke new records, raising more than $2.6 million for children with special needs and education. With approximately 17,000 participants, the event was supported by Presenting Sponsor Kinecta Federal Credit Union as well as over 100 other generous businesses and partners, and featured appearances by Sugar Ray Leonard, Brooke Burke, and Meb Keflezighi, plus live performances by Young Selena singer Madison Taylor Baez, Dance Moms’ GiaNia Paolantonio and He’s All That actor Gabe DeGuzman.
Skechers President Michael Greenberg and Friendship Foundation member Jacob address participants at the 2021 Skechers Pier to Pier Friendship Walk in Manhattan Beach, CA. (Photo: Business Wire)
“The Skechers Pier to Pier Friendship Walk is about raising much needed funds for children with special needs and education, but today was an event like no other—hearing about the impact of the joy on the faces of so many friends and family again, it moved me and truly brought home why we have this annual event,” began Michael Greenberg, co-founder of the Skechers Pier to Pier Friendship Walk. “Over the past year, our kids have become more innovative, creative and determined. I really feel like they’ve taken a page from our playbook on how to thrive through anything, the same way we’ve vowed to improve their lives through the Skechers Pier to Pier Friendship Walk.”
Mr. Greenberg continued: “Huge thanks to Kinecta, all of our generous sponsors, our celebrities and thousands of participants. Their sponsorship, contribution and enthusiasm illustrate both a giving spirit and how much they believe, like I do, that our future rests in the hands of these bright kids—we just need to provide the resources so they can be all they can.”
“It was such an honor to take part in this incredible Walk—I connected with it very personally,” added four-time Olympian and Boston and New York City Marathon Champion Meb Keflezighi. “When I first came to America as a child, it was at school where I became a competitive runner—and those early days of training and racing have inspired every part of my life and have given me opportunities beyond my greatest dreams. By funding athletics, activities, clubs, classes, teachers and facilities for all of these children at the Friendship Foundation and schools, we’re giving this entire generation a chance to see how big their lives can really be.”
“The Skechers Pier to Pier Friendship Walk’s funds have helped transform the Friendship Foundation from a dedicated community club to a world-class organization that is redefining possibilities for children with special needs,” said Yossi Mintz, executive director of Friendship Foundation. “We’re helping in so many ways—from zoom pals and friendship clubs at over 40 schools which buddies up students with special needs to mainstream them with children on campus, to popular in-person clubs, enrichment classes, sporting events and our upcoming Friendship Foundation Campus which will break ground early next year with plans to open in 2023. All combined, we’re on the cusp of a great new chapter for children and young adults with special needs to get an education and job training so that they can be a part of the workforce of our great country. We’re grateful for how much the Walk has inspired other children to welcome these wonderful kids into their lives.”
Historically California’s largest event for children with special needs and education, the 3.5-mile Skechers Pier to Pier Friendship Walk has raised more than $17 million to date for public schools, scholarships and the Friendship Foundation—with approximately 17,000 registrants this year.
Donations from the Skechers Pier to Pier Friendship Walk support The Friendship Foundation and education foundations for public schools. The Friendship Foundation offers children with special needs one-on-one peer visits and social recreational activities, from online gatherings to summer camps, sporting event outings and classes such as music, yoga, cooking, art and drama. The event also helps enhance schools, reduce class sizes, update labs, libraries and facilities as well as protect teachers’ jobs. This year, the Skechers Foundation’s national scholarship program will donate a portion of the proceeds to students with financial need and proven excellence in academics, athletics and leadership, and has awarded $620,000 to date.
The Skechers Pier to Pier Friendship Walk thanks its Presenting Sponsor Kinecta Federal Credit Union, and all of its generous sponsors, including The CET Foundation, Nickelodeon, Steel Sports, Steel Partners, McCarthy Building Companies, Vertra, Dakine, Dreamworks Animation, The MBS Group, Continental Development, United Legwear & Apparel, Chevron, Moose Toys, Petco Love, Ross Stores, simplehuman and many more companies who have helped us support, educate and inspire a generation of children.
To watch this year’s Skechers Pier to Pier Friendship Walk and learn more about the event, please visit skechersfriendshipwalk.com or YouTube, and follow the Walk on Facebook, Instagram, and Twitter.
About Skechers Foundation
The Skechers Foundation was established to provide families around the world with the necessities and skills to succeed in life. In addition to organizing the Skechers Pier to Pier Friendship Walk, the Skechers Foundation funds tax-exempt, 501(c)(3) nonprofit organizations that provide education and job training, shoes, clothing, fitness and nutrition guidance to communities in need.
About SKECHERS USA, Inc.
Skechers (NYSE: SKX), The Comfort Technology Company based in Southern California, designs, develops and markets a diverse range of lifestyle and performance footwear, apparel and accessories for men, women and children. The Company’s collections are available in the United States and over 170 countries and territories via department and specialty stores, and direct to consumers through 4,057 Company- and third-party-owned retail stores and e-commerce websites. The Company manages its international business through a network of global distributors, joint venture partners in Asia, Israel and Mexico, and wholly-owned subsidiaries in Canada, Japan, India, Europe and Latin America. For more information, please visit about.skechers.com and follow us on Facebook, Instagram, Twitter, and TikTok.
This announcement contains forward-looking statements that are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include, without limitation, Skechers’ future domestic and international growth, financial results and operations including expected net sales and earnings, its development of new products, future demand for its products, its planned domestic and international expansion, opening of new stores and additional expenditures, and advertising and marketing initiatives. Forward-looking statements can be identified by the use of forward-looking language such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” “project,” “will be,” “will continue,” “will result,” “could,” “may,” “might,” or any variations of such words with similar meanings. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements. Factors that might cause or contribute to such differences include the disruption of business and operations due to the COVID-19 pandemic; delays or disruptions in our supply chain; international economic, political and market conditions including the challenging consumer retail markets in the United States; sustaining, managing and forecasting costs and proper inventory levels; losing any significant customers; decreased demand by industry retailers and cancellation of order commitments due to the lack of popularity of particular designs and/or categories of products; maintaining brand image and intense competition among sellers of footwear for consumers, especially in the highly competitive performance footwear market; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in Skechers’ annual report on Form 10-K for the year ended December 31, 2020 and its quarterly report on Form 10-Q for the three months ended June 30, 2021. More specifically, the COVID-19 pandemic has had and is currently having a significant impact on Skechers’ business, financial conditions, cash flow and results of operations. Forward-looking statements with respect to the COVID-19 pandemic include, without limitation, Skechers’ plans in response to this pandemic. At this time, there is significant uncertainty about the COVID-19 pandemic, including without limitation, (i) the duration and extent of the impact of the pandemic, (ii) governmental responses to the pandemic, including how such responses could impact Skechers’ business and operations, as well as the operations of its factories and other business partners, (iii) the effectiveness of Skechers’ actions taken in response to these risks, and (iv) Skechers’ ability to effectively and timely adjust its plans in response to the rapidly changing retail and economic environment. Taking these and other risk factors associated with the COVID-19 pandemic into consideration, the dynamic nature of these circumstances means that what is stated in this press release could change at any time, and as a result, actual results could differ materially from those contemplated by such forward-looking statements. The risks included here are not exhaustive. Skechers operates in a very competitive and rapidly changing environment. New risks emerge from time to time and we cannot predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results. Moreover, reported results should not be considered an indication of future performance.
Jennifer Clay
SKECHERS USA
[email protected]
(310) 937-1326
